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How much is too much on parts markup?

17K views 31 replies 24 participants last post by  tomv 
#1 ·
Something I have always wondered and maybe, just maybe there is someone here who has the inside scoop. What is the markup on parts you buy from the MOCO Stealership? I would guess its probably right at 100%. I mean the local indy shop here carries some harley parts and most of the time he has them at 15% off MSRP. He has to be making something. For instance, the dealership buys a part for $50. I bet the MSRP is $100. Does that sound about right. I'm not 100% sure I want to know cause I will probably only get mad the next time I have to buy a part. Comeon.....shed some light on the subject.

peace--
 
#27 ·
at our dealership (chevy in Middle TN), we have many pricing structures, good wholesale (for shops that buy over 1K a month, 20% over cost), wholesale (all other shops, 25% off list), discount (10% off list), list (for general sales if we like the guy) and "matrix" which is a computer generated percentage over list (for service sales and general public)...

after reading the above posts, I'm not sure what "percentage" it is, but the average wiget that costs, say, $30 will sell for over $100........prime example would be a coupl of things I sold yesterday.....a hard tonnou (sp?) cover...cost was around $800, list was $1100, I sold it for $1480 (plus install labor)........an alternator (a/c delco) cost was around $100, sold for over $300.........

the big "drop" comes when the shop needs something immediately and we have to get it from a parts store........the difference between cost and list is nearly nothing, so I take the cost, say $50, subtract it from the list, say, $70.....that's $20 difference.......I split that down the middle and add it to the cost, the customer pays $60, he/she paid $10 over cost and I made $10.......I can't think of a more fair way to do things like that......
 
#28 ·
A message from the self employed

I have been doing the same thing for 11 years, I am more expensive than my competition, and I have seen plenty of them come and go. It takes money to keep the monthly expenses paid. I am not afraid to tell anyone I am in buisness to make money, my buisness name doesnt end in Savings and Loan. If you want it cheaper, goto the competition, he cuts corners and quality. If your lucky he will still be in buisness to help you with warranty claims if the need would arise.

What a person makes on product mark up or labor is what they make, like its been said....are you willing to pay it.
 
#29 ·
what the market will bear is the rule...along with what will pay their expenses and allow a reasonable profit at the end of the month...businesses are...as stated previously...in business to make money...not to give parts away for what people who dont want to spend money think is fair....an independant shop ahs a much lower overhead than a dealer and can in many cases undercut them with a sufficient profit....think about the services provided and the number of people available to wait on you at your dealer and compare it to your local independant...expenses...size of the showrooms and number of parts on display or readily available without ordering...expenses...benefits if they have them (yeah...that includes paid vacations and legitimate payroll as opposed to money under the table)...expenses....

internet dealers sell at discounts not available in their stores becuase they are normally reaching well outside of their normal market area with the sale...no matter what that is a plus sale that would not have been made locally....in some cases you have to be prepared with the part number ahead of time by doing some research on your own...this lowers the amount of time they have to spend with you making the system more efficient for them therefore less expensive...many of us who have dealt with internet dealers have found them to be very accomodating...

msrp is a recommended price and nobody is obligated to charge it...if they were it would be considered price fixing and illegal...a dealer is allowed to charge whatever they feel they need to charge and what their customers will pay...too far in either direction and there are negative results.....

consumers are not obligated to buy from any particular retail outlet....they can go anywhere they think they are getting a better deal or pay the higher price because they enjoy the service or just dont know any better....their choice...

there is no such thing as how much is too much except for your own personal situation....
 
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